India’ JSW Steel Limited will invest an estimated $2.28 billion to add another 5 million mt per year capacity to its existing 10 million mt per year Dolvi steel mill in the western state of Maharashtra, company CEO Jayant Acharya said in a statement on Monday, May 20.
Mr. Acharya said that this would take JSW Steel’s total capital expenditure to around $7.71 billion over the next three years to take the group’s total installed steelmaking capacity to 42 million mt per year, which includes the ongoing capacity expansion of mills at Vijaynagar, Jharsuguda and Bhushan Power and Steel Limited.
JSW Steel’s projected cost for adding five million mt of capacity at Dolvi stands at around $460/mt, significantly below the global average cost of $700/mt. The company intends to primarily finance this capital expenditure through internal accruals.
